Problem 17-2 On January 1, 2017, Crane Company purchased $380,000, 8% bonds of Aguirre Co. for $350,656. The bonds were purchased to yield 10% interest. Interest is payable semiannually on July 1 and January 1. The bonds mature on January 1, 2022. Crane Company uses the effective-interest method to amortize discount or premium. On January 1, 2019, Crane Company sold the bonds for $352,236 after receiving interest to meet its liquidity needs.